Abstract
This paper is focused on the benefits and costs of foreign direct investment (FDI) in Nigeria. The effects of FDI on economic growth and development for the period 1970-2009 were analyzed using the annual series data of manufacturing firms sourced from Central Bank of Nigeria and National Bureau of Statistics (NBS). We employed ordinary least squares (OLS) regressions in estimating the parameters of the models used, and the empirical analysis was conducted unit root analysis by using Augmented Dickey-Fuller test. The time series properties of the variables considered were also investigated using pair wise Granger causality test. It was found out that FDI has a positive and significant relationship with the real gross domestic product. We therefore concluded that FDI creates no significant problems for Nigerian economy.